MicroStrategy Turns a Profit with Bitcoin Holdings
Finally, some good news in the tumultuous world of cryptocurrency! As of October 23, MicroStrategy’s Bitcoin (BTC) holdings are basking in the glow of profits, totaling approximately $132 million. Holding onto 158,245 BTC, their total worth has now reached an impressive $4.847 billion. Each coin is currently valued at around $30,000, resulting in an uplifting moment for the firm as it gains about $130 per coin.
The Journey of Bitcoin Investments
MicroStrategy didn’t simply trip and fall into this profitable position; their Bitcoin adventure began back in 2020. The company ramped up its purchases in 2023 based on Bitcoin’s recovery from earlier losses, which were largely caused by the U.S. Federal Reserve’s changes in interest rate policies and a slew of well-publicized bankruptcies in the crypto space. In September 2023 alone, they purchased 5,444 BTC using raised capital—a similar strategy they employed when acquiring approximately 12,333 BTC earlier this year.
Michael Saylor’s Enthusiastic Stance
The mastermind behind this Bitcoin bounty, Michael Saylor, co-founder and chairman of MicroStrategy, has proudly showcased Bitcoin’s superior performance compared to traditional assets since their bold investment strategy kicked off in August 2020. According to Saylor, Bitcoin has outshone various conventional investment options like the S&P 500, Nasdaq, and even gold!
What Lies Ahead for Bitcoin?
The question on everyone’s lips now is: will Bitcoin keep climbing, or is it a bumpy road ahead? Since May 2022, Bitcoin hasn’t established a definitive upward trend after surpassing the $30,000 mark, with market manipulation and investor sentiment often leading to a rollercoaster of price movements. There’s chatter about Bitcoin potentially testing support levels below the average buying price again if things go south.
Market Indicators and Future Predictions
Worry not, future crypto enthusiasts; technical analysis has shown Bitcoin’s daily relative strength index (RSI) is at dangerously high levels—so much so that it could mean a price drop or stagnation. If a correction happens, we may see Bitcoin’s price drift towards its 50-day exponential moving average around $27,720, a 10% slip from current values. However, if Bitcoin can maintain the $30,000 support level, who knows? A leap toward the resistance area of $32,000 awaits.
The ETF Effect
From a different lens, the possible approval of Bitcoin exchange-traded funds (ETFs) in the U.S. could create a massive rally in market capitalization—up by $155 billion, according to CryptoQuant. If green-lit, BTC could potentially soar between $50,000 to $73,000 in 2024, which would undoubtedly thrill MicroStrategy! Regardless, the firm is staying true to its Bitcoin strategy regardless of ETF developments.
As always, remember that this article doesn’t serve as financial advice—investing holds risks, so make sure to do your own research before diving in!
